We recently published a list of the 11 Best Young Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where SharkNinja, Inc. (NYSE:SN) stands against other best young stocks.
NASDAQ CEO and chair Adena Friedman appeared on CNBC’s ‘Squawk Box’ on April 24 to discuss what to make of the market volatility, as well as the IPO landscape. Friedman reported that NASDAQ achieved 12.5% overall revenue growth in the quarter, with every division posting double-digit increases. Specifically, the index business grew by 26%, which was supported by $27 billion of inflows during the quarter. Half of these inflows were directed into NASDAQ 100 index products, while the other half went into various other indexes offered by NASDAQ. Friedman also acknowledged that the economy entered the year with resilience but faced increasing uncertainty and volatility as the quarter progressed. However, she explained that such environments often drive clients to turn to NASDAQ as the market operator of choice to manage their trading volumes and capital flows. She noted that even amid market value fluctuations, NASDAQ saw inflows into its index products and strong demand for its fintech services.
The discussion also indicated that while short-term market volatility can boost trading activity and liquidity, longer-term IPO prospects depend on broader economic conditions. Friedman said that IPO activity and investor behavior could change more significantly if the economy were to enter an extended recession. But for now, NASDAQ benefits from a strong start to the year and remains a preferred venue for investors to express their views. The conversation then turned to global capital flows, particularly as Chinese sovereign wealth funds may reduce investments in US venture capital and private equity firms. Friedman stated that the capital flows where returns are the strongest. She emphasized that asset owners and managers have ‘fiduciary’ responsibilities to their ultimate beneficiaries and will prioritize returns over the long term. Acknowledging the influence of geopolitical and political factors on investment decisions, Friedman stressed that NASDAQ’s role is to provide the infrastructure that allows capital to flow efficiently regardless of shifts.
Our Methodology
We first used the Finviz stock screener to compile a list of young stocks that went public in the last 3 years. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A supermarket aisle filled with Household and Personal Care Products.
SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 63
SharkNinja, Inc. (NYSE:SN) is a product design and technology company that operates under the Shark and Ninja brands. It offers consumer solutions like cleaning, cooking, food preparation, beauty, and home appliances. Its products are sold through various retail and online channels. Oppenheimer analyst Rupesh Parikh maintained a Buy rating on SharkNinja on May 9 and set a price target of $120.
While SharkNinja experienced growth across all 4 of its major product categories in Q1 2025, the Food Preparation Appliances segment had its net sales increase by $92.4 million, or a 45% year-over-year, to make $297.4 million. This was fueled by strong consumer demand within the frozen drinks sub-category, specifically for the company’s Slushi maker, and the ice cream makers sub-category. The overall company net sales growth was 14.7% for the quarter.
SharkNinja, Inc. (NYSE:SN) is expected to continue innovating within the Food Preparation Appliances category to maintain this growth trajectory. The overall strategy emphasizes introducing disruptive products and expanding its portfolio. For this reason, the continued investment in R&D increased by 25.9% to $87.6 million in Q1 2025.
Munro Global Growth Small & Mid Cap Fund believes in the company’s transformative potential and stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q4 2024 investor letter:
“SharkNinja, Inc. (NYSE:SN) contributed -34bps to Fund performance for the quarter. SharkNinja, based in Needham Heights, Massachusetts, is a leading designer and marketer of electrical household appliances.
Originally known for its vacuums and long infomercial advertising across late hours of the night, SharkNinja has transformed itself into a leading household appliance company, continuing to move laterally into new areas of the home. Their proposition is simple, create innovative, best-in-class products at price points that attract all consumer demographics. SharkNinja is the epitome of positive customer perception, one of the six qualitative characteristic traits in Munro’s investment process.
Roughly 12 months ago, fresh off its IPO, SharkNinja remained an undiscovered story, trading at less than 15x earnings. The company had forecasted its revenue to grow by 7-9% in 2024. Fast forward to today, the company is really catching the eye of consumers on a global scale, which has led to a big acceleration in revenue, likely, in our view, to be over 30% for 2024 when the company reports its result in mid-February.…” (Click here to read the full text)
Overall, SN ranks 6th on our list of the best young stocks to buy according to hedge funds. While we acknowledge the growth potential of SN, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
